Ripple announced on Friday that the Siam Commercial Bank (SCB) is the first financial institution to use its ‘Multi-Hop’ feature. The SCB is Thailand’s first domestic bank, founded in 1906. The information was announced by Ripple in a blog post.
Siam Commercial Bank Uses ‘Multi-Hop’ Feature
The SCB is the first institution on RippleNet that will be using the so-called ‘Multi-Hop’ feature. The bank founded more than 100 years ago is currently the third-largest bank in Thailand.
Banking institutions are searching for different ways to improve liquidity and reduce transactional costs. The Association of South Eastern Asian Nations (ASEAN) is also experiencing issues in the management of global liquidity. Sending money to these countries was an expensive task.
Among the nations that are part of the ASEAN we find Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
RippleNet’s ‘Multi-Hop’ feature allows a financial institution or bank to settle payments on behalf of another company. This would allow banks to obviate the need for a bilateral agreement to settle payments
On the matter, the blog post explains:
“With multi-hop, financial institutions can connect directly to SCB, which can settle and payout across the region without exchanging currencies multiple times and adding heavy fees. The result is a seamless payment experience into and out the ASEAN region.”
With this feature, companies and financial institutions using RippleNet will be benefited. Remitters and SMEs will witness how their payments settle faster, cheaper and more transparently.
This is very important for smaller companies that were not able to process payments in the region. With the latest implementation, payments would be settled in a much more efficient way.
“For smaller financial institutions which previously did not have the ability to make payments into ASEAN, multi-hop will democratize access to those countries and make payments easier, regardless of payment size or their financial institution’s pool of liquidity,” the blog post explained.
Ripple could soon present its latest xRapid product. The community is waiting for the company to unveil it during the coming month.
Our Ripple price prediction will give you additional insights in terms of what’s next for the project: https://usethebitcoin.com/ripple-xrp-price-prediction/
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.